Will XRP Price Bounce Back Stronger After Whale Activity?

The recent Bitcoin crash has knocked Ripple down, but XRP price resilience could trigger recovery rally amid whales' selling pressure.
By Akash Girimath
Will XRP Price Bounce Back Stronger After Whale Activity?

Highlights

  • XRP price breached a key yearly level of $0.561, amid broader crypto market correction.
  • This breakdown, while bearish, could reverse soon, leading to a Ripple rally.
  • XRP whales realized 337 million profit amid Friday’s 4.28% crash.

XRP price has shown incredible resilience in the past few days, but the recent Bitcoin crash has knocked Ripple down. As a result, $3.58 million Ripple longs faced liquidations on September 6. 

XRP Liquidations
XRP Liquidations
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Profit-taking Could Dampen XRP Price Recovery

According to Santiment’s Net Realized Profit/Loss indicator, investors sold 353 million XRP to book profits on September 1. Despite this sell pressure and broader crypto market crash, Ripple has shed only 4%, which shows the resilience and buying pressure. 

XRP Net Realized Profit/Loss
XRP Net Realized Profit/Loss

However, technical analysis for XRP price shows a high chance of recovery in the coming days.

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XRP Price Analysis: Ripple Bulls Ready For a Bounce

Although XRP price shed 4.28% on September 6, the remittance token is at a critical reversal level. Based on the past two-month data there are interested buyers every time Ripple has dipped. During these dips, the Relative Strength Index (RSI) has been trending higher, producing higher lows, which adds credence to the bullish outlook.Furthermore, the yearly Volume Weighted Average Price’s (VWAP) lower limit at $0.503 has also played a pivotal role in supporting the price. 

If history repeats, investors can expect XRP price to see a strong buying pressure followed by a recovery rally. 

Here are the key levels that investors must pay attention to if Ripple price climbs higher: 

  1. Yearly VWAP at $0.561, coinciding with a daily resistance level.
  2. Yearly VWAP’s upper limit at $0.619, also coinciding with another daily resistance zone, extending from $0.619 to $0.635. 

These are the short-term targets and constitute 6% and 20% gains respectively from where XRP price trades today at $0.529. In a highly bullish case, where XRP overcomes the $0.635 hurdle and flips it into a support floor, the $0.716 hurdle is the next target. 

XRP/USDT 1-day chart
XRP/USDT 1-day chart

On the other hand, if XRP price slips below the yearly VWAP’s lower limit at $0.503, it would invalidate the aforementioned bullish thesis. Such a development cold see the remittance token crash 6% and revisit the $0.469.

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Frequently Asked Questions (FAQs)

1. Why did XRP price face liquidations on September 6?

XRP price faced liquidations of $3.58 million on September 6 due to the recent Bitcoin crash, which knocked Ripple down and triggered a 4.28% price drop.

2. Is XRP price expected to recover?

Yes, technical analysis suggests a high chance of recovery in the coming days, with key levels to watch being the yearly VWAP at $0.561 and $0.619, which could lead to 6% and 20% gains respectively.

3. What are the potential risks for XRP price?

If XRP price slips below the yearly VWAP's lower limit at $0.503, it would invalidate the bullish thesis and potentially lead to a 6% crash, revisiting the $0.469 level.
Akash Girimath
Senior Cryptocurrency Analyst & Market Strategist Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts. A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise. Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
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